Barry Callebaut AG: Strong sales and earnings growth continued in first half of 2002/03

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• Operating profit (EBIT) increases by 25% to CHF
130.4 million, in local currencies increase of 31%
• Net profit up 13% to CHF 75.9 million, in local currencies up
20%
• Sales volumes up 17% to 480,497 tons
• Sales revenues up 44% to CHF 1,906.4 million, in local
currencies increase of 52%
• Gross profit up 34% to CHF 612.3 million, in local currencies
increase of 39%
• Refinancing of Group through a senior 5-year loan facility and
a debt financing structure in the capital markets
finalized

Zurich/Switzerland, April 9, 2003 – With a further
increase in both sales and net profit in the first six months of
fiscal 2002/03 ended February 28, 2003, Barry Callebaut AG, the
world’s leading manufacturer of high-quality cocoa and chocolate
products, confirmed its growth potential. These good results have
been achieved in stagnating and in some regions even contracting
chocolate markets. Market shares for Barry Callebaut in the segment
of chocolate for industrial customers as well as for artisanal
users were further enhanced.

Sales volumes increased by 17% to 480,497 tons
from 411,826 tons in the prior-year period. In line with corporate
strategy, the Cocoa, Sourcing & Risk Management business unit
reduced its sales to third-party customers by another 10%. Sales
volumes in the Food Manufacturers business unit grew 4%. The growth
registered in the Gourmet & Specialties business unit was 3%.
Both growth rates were achieved organically. The sales volume
increase in Consumer Products (+ 232%) was mainly the result of the
first-time consolidation of the German Stollwerck Group.

Sales revenues recorded an increase of 44% to
CHF 1,906.4 million, up from CHF 1,322.3 million in the prior-year
period. In local currencies, sales revenues grew 52%. As in the
first quarter of fiscal 2002/03, sales revenues grew faster than
sales volumes due to the increase in average cocoa bean prices in
the period under review compared to the 2001/02 period.

Gross profit, which equals sales revenues less
material consumed, jumped by 34% to CHF 612.3 million, up from CHF
456.9 million in the prior-year period. Operating profit (EBIT)
grew faster than sales volumes, namely by 25% to CHF 130.4 million,
up from CHF 104.6 million in the prior-year period. On a per ton
basis, operating profit (EBIT) increased by 7% to CHF 271.3 per ton
from CHF 254.1 per ton in the prior-year period. In local
currencies, operating profit (EBIT) per ton increased by 13% to CHF
285.9. – Net profit (PAT) grew 13%, from CHF 67.2 million in the
prior-year period to CHF 75.9 million. In constant currency terms,
net profit growth was 20%.

It is important to remember the seasonal nature of Barry
Callebaut’s business. While revenues peak in the period between
late August and the end of March as a result of the Christmas and
Easter business, they are at their low in the spring and summer
months; expenses, however, are spread equally across the fiscal
year. Therefore, full-year results cannot be extrapolated from
interim results.

Business performance by unit

To further reduce exposure to the volatile cocoa markets, sales
to third-party customers in the Cocoa, Sourcing & Risk
Management business unit were scaled back by another 10%
compared to the first quarter of fiscal 2002/03 to 62,127 tons
(prior-year period: 69,306 tons). High cocoa bean prices led to an
increase of 33% in sales revenues, bringing sales from CHF 220.5
million in the prior-year period to CHF 293.5 million. Likewise as
a result of high cocoa bean prices, gross profit decreased by 16%
to CHF 87.9 million, down from CHF 104.4 million in the prior-year
period.

Thanks to the successful launch of new chocolates and compounds
in all its major markets, the Food Manufacturers
business unit, which supplies chocolate and compounds to industrial
customers, recorded a 4% increase in sales volumes in a generally
flat market. Sales volumes went up to 270,312 tons, up from 260,508
tons for the prior-year period. Sales revenues increased by 12% to
CHF 826.6 million (prior-year period: CHF 738.4 million). The
increase was largely attributable to increased sales prices due to
higher cocoa bean prices. Gross profit decreased by 3% to CHF 226.2
million (prior-year period: CHF 233.3 million). At constant
exchange rates gross profit would have been CHF 237.8 million
(increase of 2%).

The Gourmet & Specialties business unit,
which serves professional users such as chocolate makers, pastry
chefs, hotels and restaurants, reported a 3% increase in sales
volumes to 55,605 tons (prior-year period: 54,197 tons) and an 8%
increase in sales revenues to CHF 249.7 million, up from CHF 231.4
million in the prior-year period. This increase was largely the
result of the business unit’s focus on high-margin products, the
introduction of a single pricing policy for all distributors
serving NAFTA countries and the enhanced quality of Vending Mix
products, allowing for higher selling prices. Gross profit
increased by 6% to CHF 82.3 million, up from CHF 78.0 million in
the prior-year period, due to volume increases and the higher gross
profit margins. At constant exchange rates gross profit would have
been CHF 83.8 million or an increase of 7%. In line with Barry
Callebaut’s intention to grow this business unit’s share of
total sales, the company acquired Dutch-Belgian chocolate company
Luijckx Beheer B.V., which specializes in manufacturing and trading
high-quality chocolate products and decorations. The transaction
closed on March 3, 2003.

In the Consumer Products business unit, sales
volumes increased to 92,453 tons, up from 27,815 tons, mostly as a
result of the Stollwerck acquisition. Sales revenues increased from
CHF 132.0 million in the prior-year period to CHF 536.6 million,
with CHF 415.1 million of the increase attributable to the
Stollwerck acquisition. The dual strategy of offering both branded
and customer label products is paying off. As a consequence of the
Stollwerck acquisition, gross profits increased to CHF 215.9
million, compared to CHF 41.2 million in the prior-year period. The
planned relocation of the Gubor production activities to
Norderstedt near Hamburg and the closure of the two production
plants in Münstertal and Müllheim, Germany, as of September 30,
2003, with the objective of optimizing production costs, are moving
ahead.

Review of regional market
developments

In Western Europe sales volumes went up by 27%
to 325,270 tons, corresponding to 67% of the Group’s sales volume
of 480,497 tons for the period under review, largely as a result of
the Stollwerck acquisition. Western Europe is Barry Callebaut’s
most important market. Sales volumes in Eastern
Europe (4% of the total sales volume) grew 4% to 17,822
tons.

Sales volumes in the Americas (North and Latin
America) were down by 2% as a consequence of reduced cocoa sales.
The Americas accounted for 22% of total sales volumes, or 104,568
tons.

Volumes in Asia/Pacific jumped by 14%
subsequent to reinforced sales efforts. This region’s share of
total volumes amounted to 3%, or 15,297 tons.

Volumes in Africa and the Middle East decreased
by 2% against the background of the difficult political situation
in several countries in this region. The region contributed 4% or
17,540 tons to total volumes.

Long-term financing structure

Barry Callebaut has successfully concluded a 5-year senior loan
facility with a syndicate of its main relationship banks and has
placed a 9¼% Senior Subordinated Notes in the amount of EUR 165
million, maturing in 2010, in the capital markets. The proceeds
haven been used to refinance existing indebtedness. By putting this
long-term refinancing structure in place Barry Callebaut has
improved its debt profile, reduced its short-term debt exposure and
strengthened its overall liquidity.

Outlook

Patrick De Maeseneire, Chief Executive Officer of Barry
Callebaut, commented: “Despite generally flat or even declining
markets and the depressed consumer mood we were able to enhance our
leadership position in chocolate for industrial customers as well
as for artisanal users with market shares of 39% and 35%,
respectively. The currently prevailing political and economic
uncertainties make forecasts very difficult. Having said this,
barring any major unforeseen event, I am confident that we will be
able to exceed the CHF 200 million EBIT threshold for full fiscal
year 2002/03.”

For further information see Barry Callebaut’s “Letter to
Investors” with a more
detailed review of operations published on the internet (www.barry-callebaut.com,
go to “Investors/Documentation”).

This press release is not an offer for sale of securities in the
United States. Securities may not be offered or sold in the United
States absent registration of an exemption from registration under
the U.S. Securities Act of 1933, as amended. Barry Callebaut AG
does not intend to register any offering in the United States or to
conduct a public offering in the United States. Any public offering
of securities to be made in the United States will be made only by
means of a prospectus that will contain detailed information about
the company and its management and financial statements.

About Barry Callebaut AG:With annual sales
of CHF 2.6 billion for fiscal year 2001/02, Barry Callebaut is the
world’s leading manufacturer of high-quality cocoa and chocolate
products. Barry Callebaut operates some 34 production facilities in
16 countries and employs approximately 7,000 people. The company is
organized into four strategic business units: Cocoa, Sourcing &
Risk Management, Food Manufacturers, Gourmet & Specialties and
Consumer Products.

The company’s customers range from industrial processors, such
as the world famous branded consumer goods manufacturers who
produce chocolate, confectionery, biscuits, dairy products, ice
cream and breakfast cereals incorporating Barry Callebaut’s
products, to artisanal users, including hotels, gastronomy,
chocolate makers, pastry chefs and bakers, to partners in the food
retailing industry for whom the Barry Callebaut Group produces
branded, customer label and other consumer products. Barry
Callebaut also provides a comprehensive range of services in the
fields of product development, processing, training and
marketing.

The holding company, Barry Callebaut AG, has been listed on the
SWX Swiss Exchange since June 1998 (ticker symbol BARN). The fully
paid-up share capital amounts to CHF 517 million, divided into
registered shares with a nominal value of CHF 100 each. On February
28, 2003, the close of the second quarter of fiscal 2002/03, the
market capitalization was CHF 838 million.
Fiscal year 2002/03 will close on August 31, 2003. Results for the
nine-month period ending on May 31, 2003 will be published on July
1, 2003.